[Congressional Record (Bound Edition), Volume 150 (2004), Part 11]
[Extensions of Remarks]
[Page 14232]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          CREATION OF THE FHA

                                 ______
                                 

                      HON. RODNEY P. FRELINGHUYSEN

                             of new jersey

                    in the house of representatives

                        Thursday, June 24, 2004

  Mr. FRELINGHUYSEN. Mr. Speaker, 70 years ago this month, Congress 
approved the National Housing Act that created the Federal Housing 
Administration (FHA) and President Roosevelt signed into law on June 
28, 1934.
  The value of FHA can not be overstated. For decades it has insured 
mortgage loans to help over 33 million families own their own home. The 
FHA has continuously been a critical resource in helping make home 
ownership available and more affordable. In fact most recent data 
shows, the nation's homeownership rate soared to an all time high of 
68.1 percent. I have long been a supporter of the FHA program and 
believe that it is critical for unlocking the door to homeownership for 
so many Americans.
  Mr. Speaker, my Congressional district has the unique distinction of 
being home to the first FHA Insured Mortgage approved for a house in 
the United States.
  Let me take you back to the 1930's. Our country was in the midst of 
the Great Depression. It is estimated that in 1933 there were 1,000 
foreclosures per week! In my home state of New Jersey homeownership 
rates were declining. In fact, between 1930 and 1940 they fell 9 
percent. A loaf of bread cost about nine cents and a dozen eggs went 
for 27 cents. In Morris County, the average rental paid $55 a month for 
a large house.
  Mr. Speaker, It was during this economic climate that President 
Roosevelt signed the National Housing Act into law with the intention 
of broadening home ownership, protecting lending institutions and 
stimulating the economy.
  James A. Moffett was appointed the first FHA Administrator and it is 
under his leadership that on December 18, 1934, the Newkirk family 
received the first FHA Mortgage for the completion of construction of 
their house at 30 Hopper Avenue in Pompton Plains, Morris County, New 
Jersey.
  Pompton Plains is located in the Eastern part of Morris County and is 
part of Pequannock Township. At that time, Pequannock was 7 square 
miles of land, had 2,104 residents and was comprised mostly of farmland 
and apple orchards. Today Pequannock Township is home to approximately 
14,000 residents.
  Mr. Newkirk purchased the land at 30 Hopper Avenue and built a home 
for his wife, son and himself. It is estimated that the land and house 
cost just under $10,000. The FHA loan, at $4,800 covered approximately 
50 percent of the cost of the house.
  Since the house was built, it has changed hands three times and is 
now owned by Trevor and Catherine Smallwood who purchased it on July 3, 
2003 for $470,000.
  Today this house still stands at 30 Hopper Avenue. While 70 years 
have passed the house looks much the same, a structure rich in history, 
standing for the dream of homeownership, a dream that we continue to 
work to ensure every American can achieve
  Mr. Chairman, I ask you to join me in recognizing and celebrating 
this truly historic house and all that it stands for.

                          ____________________